N. Sea production at Edinburgh-registered Premier Oil exceeds forecasts

premier oil workerProduction from Edinburgh-registered Premier Oil’s North Sea fields is exceeding the company’s expectations after it successfully completed maintenance over the summer.

The London-listed company’s shares ticked up on the news after sliding 67% over the past four months – closely mirroring the steep fall in the price of crude oil since June 2014. N. Sea benchmark Brent crude has since been in the doldrums at between $45-$50-barrel.

Premier Oil said it had so far been pumping oil at a rate of 57,100 barrels of oil equivalent per day (boepd) this year, ahead of its forecast of 55,000 boepd. 

And a new West of Shetland field – Solan – is due to start producing oil in the fourth quarter, meaning that its daily output could rise further later in the year.

Meanwhile, Premier has hedged approximately 60% of its 2H2015 liquids production at $92-barrel, and 30% of its expected liquids production in 2016 at $68-barrel. 

And as a result of ‘significant’ cost savings, Premier continues to expect full-year operating expenditure of around £10-barrel, which is among the lowest in the North Sea.

Premier also has interests in oil exploration licences in the Falkland Islands.

Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed